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The Alphabet Inc unit and Singapore’s state investment firm could sign an agreement for the financing soon, said the people, who asked not to be identified to discuss the deal before it is formally concluded.
The funding falls short of the initial target of $ 500 million to $ 1 billion reported by Bloomberg News in July, although Tokopedia may still be looking for more investors.
Tokopedia, the online marketplace backed by SoftBank Group, was said to have had conversations with US internet giants including Facebook, Microsoft and Amazon.com.
The endorsement by Google and Temasek is a vote of confidence for one of Indonesia’s largest e-commerce operators, which saw an increase in online shopping during the pandemic.
America’s largest internet corporations have increasingly looked to Asia as growth in the United States and Europe slows, seeking to take advantage of the region’s growing population of smartphone users.
Facebook is buying a stake in India’s Jio Platforms, while its WhatsApp unit has struck a deal to invest in Gojek, which has a popular digital payments service called GoPay.
Representatives for Google, Tokopedia and Temasek declined to comment.
Tokopedia Co-Founder and CEO William Tanuwijaya built Indonesia’s most valuable startup after Gojek by gaining early endorsement from SoftBank founder Masayoshi Son and Alibaba Group co-founder Jack Ma.
E-commerce platforms such as Tokopedia, Alibaba’s Lazada Group, and Shopee, a unit of Singapore-based Sea Ltd, moved quickly to serve the millions of people forced to make their first purchases online during widespread lockdowns.
Indonesia has become a key battleground between regional rivals: The country’s e-commerce market is projected to expand from $ 21 billion in 2019 to $ 82 billion by 2025, according to a recent Google study. , Temasek and Bain & Co.
BLOOMBERG
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